What is virtual net energy metering?
Virtual net energy metering (VNEM) is a billing arrangement allowing for a single solar electric system to offset multiple common area and tenant meters. The monthly solar generation is divvied out to the participating accounts using predetermined percentages that are defined by the property owner. Using those percent allocations, the utility applies solar credits directly to the multiple account holders’ utility bills. The SOMAH program requires all projects use VNEM to allocate a minimum of 51% of the solar credits directly to the tenants.
- Individual photovoltaic (PV) cells are embedded onto panels. Sunlight striking the panels is chemically converted into direct current (DC) electricity.
- The DC electricity goes to an inverter that transforms it into alternating current (AC) for use at your site.
- The total solar production is recorded by a generation meter and is sent to the grid to be virtually allocated out to each benefiting utility account at the property.